Question One A retail store dealing in computer hardware imports an enterprise model solid-state drive (SSD) at a fixed price of Ksh1000 per unit from the sole distributer of the SSD. The estimated sales are 20,000 units per month, the ordering cost per order is Ksh1000 and the average holding cost per unit per annum is estimated to be 12% per unit. Lead time is 5 days and the number of working days in an year is 250. a.Based on above information, compute i. Economic order quantity ii. Holding and ordering costs iii. Re-order point b. The company decided to maintain a safety stock of 5,000 units to avoid stockout. Taking this additional information into consideration, compute i. Economic order quantity ii. Holding and ordering costs ii. Re-order point